‘Yes’ vote a major step forward for Fonterra

Agriculture Minister David Carter is pleased that Fonterra shareholders have delivered such a resounding result on the reform of the cooperative’s capital structure.

“This is a critical step towards Fonterra developing a more stable capital base,” says Mr Carter.

“The result shows that Fonterra management listened to its farmers and delivered a package that meets both the objectives of the cooperative and its shareholders.

"The Government's goal is to promote a vibrant and innovative dairy sector by ensuring that the market for farmers' milk is contestable and that open entry and exit is maintained.”

Mr Carter says that pending the final design of Fonterra's capital structure, the Government in consultation with all dairy industry stakeholders will determine how the current regulatory regime should be modified.

“This will allow Fonterra's capital structure changes to proceed while ensuring that the Government's contestability objectives are met on a continuing basis."

ENDS

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